UK Tax Debt Expected to Reach £12.9bn Amid Rising Insolvencies
What happened
A National Audit Office report published today found that HMRC expects £12.9bn of tax debt to go uncollected, which is three times the level recorded before the pandemic. The report noted that business insolvencies rose 39 per cent between 2019-20 and 2025-26, with £9.8bn of the uncollected debt being classified as write-offs. This analysis was based on insolvency trend advice provided by CMS.
From bmmagazine.co.uk
Why it matters
The increase in uncollected tax debt and the rise in company closures indicate significant financial stress within the business sector. The National Audit Office linked the write-offs to a surge in personal bankruptcies and company insolvencies, suggesting a weakening of corporate financial stability.
From bmmagazine.co.uk
Who's involved
- National Audit OfficePublished the report detailing tax debt and insolvency trends.
- CMSProvided insolvency trend advice cited by the National Audit Office.
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The entities involved
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National Audit Office
an independent Parliamentary body in the United Kingdom
Nothing else this week.
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CMS
International law firm